PROJ02108

• Contract/PO #: FS0052FX
• Contractor Name: Northern Colorado Water Association
• Contract Type: Miscellaneous
• Water District: 0
• Loan Projects - Doc Type: Feasibility Study

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NORTHERN COLORADO WATER ASSOCIATION
Feasibility of Asset Acquisition
October 31, 1997

Proiect Sponsor

The Northern Colorado Water Association (the Association) is
a Colorado non-profit corporation. The association was
organized under Colorado Revised Statutes 7-20-101, et seq.
and Colorado Revised Statutes 7-44-101 et seq. The
Association provides domestic water to rural area residents.

The organization is exempt from Federal Income Tax as an
organization described in Section 501 (C) (12) of the Internal
Revenue Code. The Association received a favorable ruling
from the Internal Revenue Service of February 23, 1988.

Proiect Service Area

The service area of Northern Colorado Water Association
includes approximately 120 square miles and presently,
the Association has 1017 member users. The Ass 0 cia t ion
presently owns 663 acre feet of water right units of Colorado
Big Thompson and 56 shares of North Poudre Irrigation shares.

The Proiect

The Association will be acquiring approximately 440 acres of
real estate, including 5 water wells which will provide
additional water for future expansion, a beverage company,
which is presently operating on the site, and approximately
800 acre feet of water rights.

The acquisition will bring under the Association's control 440
acres of real estate which will give the Association the
control over the surface area in close proximity of existing
wells: therefore allowing the Association to guard against
contamination of it's water supply. The beverage company will
terminate operation immediately after the acquisition of the
property by the Association.

Cost Estimates

The purchase price of the project is $1,200,000.